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четверг, 24 сентября 2015 г.

12 Failure Modes in Agile Transformation

Posted by Jean Tabaka in Agile

 


 
You may have heard me talk about “12 Agile Adoption Failure Modes” that concentrated on agile failure in the context of IT teams. Given the expanded adoption of Agile practices in organizations beyond the IT group, the threat of failure is now farther-reaching, with bigger impact.
Now it’s imperative that we look not just at Agile adoption, but at Agile transformation — where organizations move beyond Agile principles within their IT groups to business agility. To accomplish this, we transform from just doing Agile to being Agile.
Over the next few weeks I’ll share with you the top 12 failure modes of an Agile transformation that I’m witnessing in my work with organizations around the globe. The first three center around LEADERSHIP.

1. Lack of Executive Sponsorship


David SpinksThe Leader


 photo via Flickr CC




This failure mode evidences itself in several different ways and ultimately, it warrants its spot as the number one failure mode and drives all the other failure modes. Also known as “buzzword buy-in,” a lack of executive sponsorship can come at you from two directions
Imagine a small group of techies eager to adopt Agile in their team. With no executive sponsorship, they perform in a stealth environment — sort of a “skunkworks” adoption — under the radar of the existing organizational structure. Why? Because they’re hiding from the hierarchy of management (see the second failure mode, below) which could shut down their effort, and evading the current gate-driven approach to product delivery. While the project may gain some momentum, deliver value faster, and stir the souls of those involved, its sustainability is improbable. Lack of executive sponsorship will limit visibility into the team’s success and provide insufficient support for adoption across subsequent teams. Agile adopted this way will likely die.
 
In our second scenario, an executive decrees a switch to Agile delivery across the entire IT organization, but there’s no real follow-through: it’s simply a “checkbook commitment.” The executive demands immediate results, yet doesn’t change the metrics by which success is measured. Unengaged, the executive proclamation for an Agile adoption will never move to a true business transformation. At best, without the executive’s continued engagement, the organization will only have pockets of Agile success, typically limited to the team level. The organization will probably grow to blame Agile (and each other) for decreased quality and productivity. And the executive’s resignation letter will conveniently not include the word “Agile” in its summary of successes.
 
How do we prevent this failure? Leaders must accept that a successful transformation is a journey. Along this journey, leaders seek guidance for a transformation with a broad, sustainable impact. As part of the transformation they make a personal commitment to their teams, and in turn they recognize the personal commitment they are asking of their employees. Executives commit to measuring success differently from before, because the work is different from before. Success now favors value delivery, and time for learning is built into the transformation. Ultimately, success is celebrated across the organization and setbacks are seen not as failures or cause for blame, but as opportunities for learning and growth.

2. Failure to Transform Leader Behaviors

Isn’t it great to have managers who just get things done? They know the right actions to achieve success; they direct their teams to perform these actions; and they have the power to control all aspects of the work and do whatever it takes to get it done.

Huh?

Let’s pull this apart a little. When a manager tells the team what to do, there’s a false sense of success via control. When a manager powers through difficult circumstances regardless of the impact on the team, they leave the wisdom and the morale of the team behind.
Royce Bair.  

Telephone Switchboard Operators - a vintage circa 1914 photo

 photo via Flickr Commons


Such a management style is a classic Agile transformation failure mode. All the team-level Agile practices in the world mean nothing if the manager doesn’t embrace a behavior that is more in service to the team than control of the team. Robert Greenleaf’s work identifies the characteristics of what he calls a “servant leader”: one who serves by leading, and leads by serving. An Agile transformation success story hinges on the ability of the leaders in the organization to take on these characteristics:
  • Systematic neglect: knows the limits of how much focus can be allocated to issues; learns what to focus on and what to let go of in order to support the team and achieve goals effectively
  • Acceptance: knows when to let go and trust the instincts of the team; accepts the wisdom of the team and is prepared to support it
  • Listening: facilitates useful and necessary communication, pays attention to what remains unspoken, and is motivated to actively hear what others are saying
  • Language: speaks effectively and non-destructively; clearly and consistently articulates the vision and goals for the team
  • Values: is responsible for building a personal sense of values that are clearly exhibited through consistent actions; supports team behaviors that build their sense of values
  • Tolerance of imperfection: modulates his or her own sense of perfection and offers to each team member an understanding of their strengths and challenges; cares more about “How can I help the team grow?”
  • Goal setting: owns the vision; doesn’t advocate for a personal belief in what is right but rather maintains the goal for a higher purpose, inviting others to align with the vision for the overall good
  • Personal growth: recognizes the value of continually finding diverse disciplines that invite new ways of acting in service to the team, and models this growth behavior to inspire others
  • Withdrawal: knows when to step back and allow the team to figure out its course, versus inflicting a personal sense of what is right for the team; carefully decides what to bring forward and when

3. No Change to the Organizational Infrastructure

What is your current organizational structure? How many layers of management exist around each Agile team? How is governance perceived, and who is ready to break down walls to make sure that value flows through your organization?
Sean BonnerEuropean Bike Lane FAIL

 photo via Flickr CC

 
Failed Agile transformations suffer from an inability to change the existing organizational structure. What do I mean by this? Typical organizations have been set up for sub-optimization: that is, they measure success by departmental performance, versus overall value delivery. Here’s what that looks like: In the book This Is Lean, authors Niklas Modig and Par Ahlstrom depict a soccer field scattered with teams, each one in its own tent. Success is defined as any one team getting the ball out of its tent. But is that really success overall? In this scenario, as in our traditional organizations, we create accidental adversaries. We limit visibility of the organization’s overall effectiveness, and focus on our team’s success at the expense of success for the organization.

True Agile transformations push the boundaries of these existing organizational hierarchies. In the soccer field metaphor, we remove the tents. Now everyone can see where the ball is, where everyone else is, where the goal is positioned, what the referee is indicating, what the coach is saying, and what the scoreboard says. In your effective Agile transformation, you know what the true value is, you know who needs to be involved in order for the value to be delivered, and everyone associated with the value delivery has visibility into the current state of the value stream, including its blocks. They see the goal as successful delivery of value to the customer, and they coordinate as a whole to deliver that value.
 
Here’s another symptom that your organizational infrastructure is crippling your Agile transformation: Does your organization cling to a notion of efficiency based on resource usage — believing that loading people to 100% capacity is the best way to get work done, and then measuring people annually by how well they deliver in this fully-loaded mode?
To incent greater collaboration and communication, you need to revisit how you appraise work. Instead of annually, by individual, 100% utilized, with MBOs set 12 months earlier, you should invite frequent feedback; focus more on team effectiveness; and bias performance appraisal toward efficiency of value flow versus efficiency of workers.
 
If you’re not feeling the discomfort change brings, you aren’t truly transforming. If your transformation isn’t requiring you to invest in the technology and culture to support a new mode of visibility and collaboration, you aren’t truly transforming. If you’re adopting some Agile practices at the project level without looking at the bigger picture, your Agile transformation is poised for failure. And Agile, not the failure to transform the organization, will get the blame.











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четверг, 28 мая 2015 г.

9 Blind Spots That Sabotage Businesses, and How to Beat Them



Entrepreneurs regularly confront a host of tough challenges. Just a sampling among them: landing their first sale, growing their customer base, hiring the right employees, managing cash flow and getting access to funding.
But the biggest challenge entrepreneurs may face is either a self-limiting or self-inflated view of their capabilities. Possessing fear, self-doubt, over-confidence, in-group thinking, misplaced commitment to a selected course of action or entrepreneurial myopia are just some ways an entrepreneur can sabotage his or her business.
Gallup research reveals nine potential blind spots that can hurt the venture.

1. Relentless focus on profitability

Making money is the primary objective of a business. But when profit orientation becomes an obsession, customer relationships can suffer. In a “profit first” culture, employees are under immense pressure to maximize revenue with little consideration for the customer experience.
Advice: Don’t lose sight of the human element in business. Keep customer expectations in mind when making decisions.

2. Overconfidence

Confidence grows businesses, but overconfidence can hurt it. Overconfidence leads entrepreneurs to underestimate the complexity of the situation, and overcommit resources in pursuit of an opportunity without assessing competition.
Advice: Avoid the speed trap. When the window of opportunity is narrow, pause and build what-if scenarios before taking action.

3. Unfocused creativity

Intellectual curiosity spurs growth, but too many ideas can be counter-productive. Lack of focus might cause an entrepreneur to launch multiple initiatives at the same time, losing sight of their core business and confusing their teams.
Advice: Select ideas that streamline your business and add value for your customers.

4. Need for control

Go-it-alone entrepreneurs can single-handedly get things done in a startup environment. But as the venture begins to grow, their need for control keeps them from focusing on activities that bring the highest value to a growing business.
Advice: Hire, train and transfer responsibilities to others.

5. Ineffective delegation

Delegation is key to growth. But setting up an effective delegation process is hard. Often, entrepreneurs hand off tasks to those with the least on their plate and make the mistake of micromanaging the person -- behaviors that lead to costly mistakes.
Advice: When delegating, identify the right person for the task, give clear instructions and be patient. Building capacity of your team members takes time and effort.

6. Misplaced commitment to a selected course of action

Entrepreneurs with high tenacity and perseverance may have the tendency to stick with a failing strategy, even when the results are consistently below expectations.
Advice: Set specific milestones to gauge progress on your project. Be prepared to change course if needed.

7. Entrepreneurial myopia

It’s not uncommon for entrepreneurs to fall in love with their idea or product. Their closeness to it and an intense desire to see it succeed blinds them to its flaws.
Advice: Try to be objective about what you offer to the market. Surround yourself with trusted advisers who can help you assess situation objectively.

8. Ineffective networks

Robust and diversified personal networks facilitate venture growth. But many entrepreneurs either fail to build an effective network or are unable to adapt the network to accommodate their venture’s evolving resource needs.
Advice: Figure out strategies to build your social quotient. Don’t forget to refresh and reshape your networks as your needs change.

9. Confirmation bias

Successful entrepreneurs have highly positive self-image, which leads them to favor information confirming their beliefs and opinions, while discounting information that contradicts their viewpoint. This bias affects their decision-making.
Advice: Interact with people with opposite viewpoints. Allow them to counter your ideas and concepts. This will help you perceive opportunities more realistically.
Your behaviors may or may not be easy to change, but they tell you where to begin. Recognize and understand your most basic qualities. Once you understand your strengths, biases and preferences, create a road map to systematically and consistently nurture your strengths and manage areas of weaknesses.
This nurturing of positive behaviors and figuring out strategies to manage areas that can negatively affect your business will yield extraordinary results. It will accelerate your personal development and positively influence the sustainability and growth of your venture.

Article contributed by--Sangeeta Bharadwaj Badal

Primary Researcher for Gallup's Entrepreneurship

пятница, 15 мая 2015 г.

Part 2: Take your strategy from paper to pavement

Cesare Mainardi and Paul Leinwand

Far too many strategies fail when it comes time to bring them to life. In fact, more than two-thirds of executives say they don’t have what they need to execute their strategy. Find out how your company can avoid falling into the strategy-through-execution gap by asking 3 questions.
Watch this video to find out how you can build a practical strategy that works.

суббота, 14 марта 2015 г.

Growth Is Optional: 10 Reasons Why Companies Fail At Growth

Written By 

The other day I was watching Alex Schultz, the VP Growth at Facebook, give a lecture on Growth for the CS183B class.  He made a lot of great points, but the last 60 seconds I thought were the best:
“Mark [Zuckerberg] has said he thinks we won because we wanted it more, and I really believe that. We just worked really hard. It’s not like we’re crazy smart, or we’ve all done these crazy things before. We just worked really really hard, and we executed fast. I strongly encourage you to do that. Growth is optional.“  
I bolded the words, “growth is optional”, for a reason.  I think this summarizes things so well. It might sound crazy because I’ve never met a company that says they don't want to grow.  But many don’t do the thingsrequired to grow.  It reminds me a lot of people who want to lose weight, stop smoking, or make some other major change in their life.   They have the desire, but not the will to do the hard things.   
The wrong mantras have been pushed.  Product is everything.  You growth hack your way to success.  The way to find growth is to try every channel possible.  Paid acquisition is for companies with bad products.  
They are all simply wrong.  
The concepts behind growth are much simpler than most people think.  As with most things, it is executing that is the tough part.  Here are 10 things I’ve seen companies fail at executing that prevent them from growing.  
10 Reasons Fail At Growth.001.jpg

1.  They don’t focus on retention first.  

Retention is probably the toughest piece of the funnel to optimize, but it is required for anyone to grow.   Many avoid taking a brutally honest look at their retention or don’t have the patience required to truly measure it.  As a result they trick themselves into thinking they have product-market fit when they really don’t.  You can hide retention problems for awhile by increasing acquisition at the top of the funnel.  But with poor retention, the end is inevitable.  

2.  They subscribe to “product is everything” mantra.

The "product is everything" mantra leads teams to build more product, rather than work on growth problems which is often about refinement.  In most cases, building more product does not lead to faster growth.  Builders like to build.  Growth problems can seem boring to teams that love to build new stuff which is why you need to make sure you have people on the team that are at least partially motivated by outcomes.   

3.  They search for the silver bullet. 

Some teams think there is one hack, one secret, one trick, one tactic that will solve their growth problems.  As a result they don’t put in the hard work to find all the little things that add up to growth.  You will always have experiments or features that are outliers.  But most of the time those outliers are the result of a ton of learnings that have built up over time.  Don’t focus on finding your silver bullet, focus on establishing a growth process that provides data driven focus on experimentation and learning.   

4.  They don’t focus

A lot of teams take a shotgun approach to growth by trying a little bit of everything, but never a lot of one thing.  It is harder to focus than it is to try everything.  As a result they end up just scratching the surface rather than digging a layer deeper to find what really works.   There are two things to remember.  One, most successful companies get the majority of their scale from a single channel.  The “Power Law” as Peter Thiel describes it.  Two, there are only a few ways to scale.  If you can’t decide, here is a framework to help you prioritize acquisition channels

5.  They don’t invest enough in data and analytics. 

Focusing on data and analytics involves going far beyond instrumenting a few events in Mixpanel.  It is a significant time investment.  You need to have a commitment to data.  Working on analytics doesn't feel like you are making progress on product.  As a result, it often gets de-prioritized in the face of building new features.  You can't view time spent on data as subtracting from building things.  You have to view it as time that will help you build the right things. 

6.  They don’t run experiments...a lot of experiments.

Solving growth problems requires running a rigorous experiment process.  Not just one or two, but a lot of experiments.  The Sidekick growth team has run 1015 experiments since June 2014 and our experiment throughput is accelerating.  Each experiment produces learnings.  Those learnings stack on top of each other over time building your knowledge base about your user, product, and channels.  The deeper your knowledge on these three things, the higher the probability you run a successful experiment that leads to growth. 

7.  They don’t dig in and learn.  

If teams do run experiments, a lot don’t dig in to figure out why something happened.   When an experiment fails it is easier and more exciting to move on to the next idea on the list.  The only way to learn is to figure out the “why” regardless if an experiment succeeded or failed.     

8.  They don’t double down. 

I see teams who are having success with a specific channel, tactic, or growth experiment and then they decide to try something completely different.  I feel like I’m taking cRaZy pills when I see this.  If something is working, DO MORE OF IT before moving on to something else.  When Noah Kagan succeeded with an experiment running a contest to acquire emails for AppSumo, he didn’t try something else.  He ran contest after contest until he found the ceiling for that tactic.  When Zynga found that holiday virtual goods were huge revenue and viral drivers in one of their games, they immediately implemented across every game for every holiday you could imagine.  Yes, repetition can be boring.  But if you want to grow, look at whats working and figure out if you can do more of it before moving on.  Your job as a growth team is to drive usage and outcomes. 

9.  They don’t dedicate the right resources towards growth.  

I see a lot of teams (especially older, larger companies) get intrigued by growth.  So they take one person and say “go do this growth hacking thing.”  That one person has to go around to beg and borrow from a bunch of departments to get the resources they need to accomplish even a few experiments.  This is a setup for failure.  Solving growth problems requires focus, dedication, and mixture of engineering, design, data, and marketing skills.  You have to make sure all those skills are represented in a focused team that has the autonomy and authority to implement experiments and make efficient progress.

10.  They don’t change and adapt.

Companies generally go through three stages.  Traction, transition, growth.  What makes you successful at the traction phase, is not what makes you successful at the growth phase.  The people, processes, metrics, mentality, and more need to adapt as your product and company flow through these stages.  The trap is trying to use what previously made you successful, to drive future success.  
Once again, growth is optional.